Ghana's Public Private Partnership Bill has gone through its second reading granting it a safe passage into the consideration stage for the discussion and approval of proposed amendments by parliament.

The bill seeks to establish a legal framework for the development, implementation and regulation of Public Private Partnership (PPP) arrangement and projects between public institute and private entities for the provision of public infrastructure and services.

The introduction of the bill forms part of government's efforts to protect the investments of private entities involved in the PPP and boost investor confidence to improve quality and affordability of public infrastructure and services.

The bill establishes the Ghana Partnership Agency (GAP) to take up the responsibility of spearheading the development of PPP programmes; the GAP will be made up of professionals with the requisite expertise to take up the responsibility for continuity and effective implementation of PPP.

The Agency will be responsible for issuing standardised PPP provisions, manuals and guidelines for the effective management of PPP projects.

Deputy Minister for Finance, Mrs Mona Quartey, who moved the motion for the second reading of the bill, said the bill seeks to promote a combination of policy and legal reforms, financing mechanisms, incentives and institutional support to boost private sector participation in the provision of public infrastructure and services.

Hon. Magnus K. Amoatey, Chairman of the Committee on Constitutional, Legal &Parliamentary Affairs, seconded the motion and presented a report of the Joint Committee on Finance and Constitutional, Legal &Parliamentary Affairs, on the bill.

He said private entities involved in PPP in the country were apprehensive as to how to safeguard their investments due to the absence of legislation.

Hon. Amoatey noted that since the adoption of the PPP policy in 2011, the Ministry of Finance had registered a total of 93 projects under PPP out of which 24 had received different level of approvals towards commencement while work on 13 was in progress. 

Hon. Magnus K. Amoatey, Chairman of the Committee on Constitutional, Legal &Parliamentary Affairs said:

"Provisions have been made in the bill to encourage private investors to partner government in the provision of public infrastructure and services"

He pointed out that the guiding principle of PPP, including compliance and safeguards, risks allocation, affordability and sustainability, fairness and transparency, stakeholders’ consultation and the application of procurement procedures, were all documented in the bill.

He said bill also establishes a PPP Funds to be used to support partnership arrangements for the operations of the proposed agency.

Minister for Employment and Labour Relations, Haruna Idrisu, in a contribution to the motion said the bill would give support to the PPP policy approved by the then cabinet in 2011.

He urged the House to strengthen the procurement role in the execution of PPP projects to ensure transparency and value for money but kicked against the establishment of a PPP Fund.

Minister for Employment and Labour Relations, Haruna Idrisu said:

“Mr Speaker I am surprise the sponsoring ministry is proposing a PPP Fund, to do what and for what purpose?  You don't need a Fund for this, what you need is a relationship between governments and private sector persons who are providing for investment in infrastructure”.

However, the absence of an effective legal framework for Public Private Partnerships (PPP) has been of major concern to investors.